AMD to buy $1.2 billion in wafers from GlobalFoundries

Advanced Micro Devices says that it will buy $1.2 billion in wafers from GlobalFoundries this year, according to a new agreement between the two companies.

That’s up from $962 million in 2013, and $1.2 billion in 2012.

Computer chips are made on silicon wafers that go through roughly 10 weeks of different manufacturing processes in a factory, such as the Fab 8 chip fab in Malta.

AMD, which spun off GlobalFoundries in 2009, is still a major customer of GlobalFoundries, which had $4.2 billion in revenue in 2013, according to IC Insights.

The two companies have a so-called “wafer supply” agreement that is often renegotiated based on the business activities of both companies. The agreement was designed to provide stability to both companies before they were able to operate entirely separate. The agreement is supposed to stop by 2024.